From the 73.8 billion beverage empire Wahaha, why decline

Of the ten reasons, Zong attributed the top reason to the fact that distributors' costs were rising. Rising costs have led to declining sales incentives and declining sales. Zong put it this way, "Rental costs are expensive, labor capital is expensive, and transportation costs are expensive. Retailers are asking for a higher spread, so the company has to add some high value-added products. I always say that sales has to solve the problem of who sells to you and who buys." The former problem, he said, is one of interest, selling your product does not make money who sells it to you.

The decline of the real economy, the rise of online shopping has undoubtedly brought great challenges to traditional enterprises, and the increase in a variety of taxes, rents, labor costs are not online shopping can be compared. How to promote the development of the real economy, not only Wahaha and Zong Qinghou facing the dilemma, but also the development of the entire national economy to solve the problem.

2 network rumors of the negative impact

Nutrition Express, Sharon "air-dried" into "gel"? "Drinks cause leukemia"? "Drinks containing Clostridium botulinum"? According to Wahaha Group's monitoring of Sina Weibo, Tencent WeChat and other self-media platforms, the above rumors have been found since 2014 a total of nearly 30,000, reproduced and viewed more than 170 million times, causing losses to Wahaha of more than 2 billion yuan.

Because online rumors circulate widely and quickly, it is easy to bring negative impacts to enterprises and even the whole industry. Not only Wahaha, like instant noodles and other products, because of rumors caused by the loss of sales brought about by countless losses each year.

3 population from rural to urban transfer

Wahaha is a development of several decades of large enterprises, compared with other enterprises, because of the strong distribution network, in rural areas and three or four tier cities in the sales channel has been laid out very well, in some big cities, in contrast, there is no small brand is more prone to expanding the new channels, such as mini-markets, convenience store chains, and so on.

And with China's urbanization process, the rural population continues to move to the city, Wahaha's offline channels also need to further expand.

4 too many types of products on sale, the lack of large single product

Wahaha's official website shows that, including beverages, snack foods, convenience foods, alcoholic beverages, dairy products, health care, now has fourteen large series of products under its banner.

Once upon a time, Wahaha also created pure water, AD calcium milk, nutritional fast food, nutritional liquid, lotus seed porridge and other explosives, but with the aging of the brand and innovation is not enough, the advantages of these explosives can not be continued, but by other enterprises of similar products gradually catch up.

5 new product development without planning

Talking about the development of new products, I have to say that Wahaha a very failed new product promotion planning. Qili is Wahaha in March 2012 launched a taurine functional drinks, Wahaha at the time to take advantage of their own distribution system comprehensive layout, and also the title of the most popular variety show "The Voice of China".

Qili contains taurine, L-carnitine, D-glucosamine hydrochloride, inositol, B vitamins and other seven major nutrient groups, as the emerging functional beverage is very advantageous. But Wahaha product positioning error, pricing 6.5 yuan even more than the functional drinks occupy the main market at the time of the Red Bull, and in the publicity of the "often drive, often prepared to Qili; both specimens; authentic health care functional drinks; drink Qili does not hurt the body; the seven nutrients, enhance immunity," etc. too listed, can not give consumers It cannot give consumers a point to memorize. Since the launch of the sales have been lukewarm, not only failed to grab the market with Red Bull, but also by the later launch of the Lehu and Dongpeng Special Drink beyond.

6 media environment is changing rapidly

Wahaha is one of the earliest advertising companies, but now the media in a variety of forms, the decline of traditional media, the rise of new media, Wahaha has not been fully adapted to this change.

7 Consumption concepts have changed dramatically

The main consumer population replacement, 90, 00 after the packaging is the first element to consider, followed by the brand concept is whether to impress, and again is the texture of the product, whether the taste is suitable.

8 market development depth is not enough, and uneven

Wahaha many products are regional best-selling single product. Because the depth of market development is not enough, Wahaha a lot of products despite the market potential, but still did not do it.

9 sales senior command improper

The former Wahaha sales boss command improperly, indiscriminate opening of customers, the big customers into small customers, because the spread becomes smaller, the dealer sales are not active, the terminal order quantity is reduced.

10 vendor relationship harmony decreased, sales team mismanagement

Wahaha part of the market vendor relationship is not harmonious. In some markets, there are cases in which salespersons cheat dealers, or dealers cheat salespersons. And some sales staff have poor discipline and are not active in their work.

But Zong was also optimistic, saying that although performance had slipped, there was no major problem in rebounding again. "I'm a person with a better mentality, encounter difficulties, encounter setbacks, the past is."